EDMONTON, Alberta, Nov. 09, 2017 (GLOBE NEWSWIRE) -- Liquor Stores N.A. Ltd. (the “Company” or “Liquor Stores”) (TSX:LIQ) today reported its results for the three and nine months ended September 30, 2017. For the third quarter of 2017 compared to the third quarter of 2016:
- Consolidated sales were $204.4 million, down 2.1% from $208.8 million. Approximately two-thirds of this decline related to the foreign exchange impact of translating our $USD sales to $CAD.
- On an adjusted basis to exclude one-time and unusual items, operating profit before amortization was $9.9 million for the third quarter of 2017. On an unadjusted basis, operating profit before amortization was $5.2 million, down from $12.6 million in Q3 2016.
- Canadian same-store sales were $126.3 million, down 1.6% from $128.3 million in Q3 2016.
- U.S. same-store sales were $51.0 million USD, down 2.9% from $ 52.6 million USD in Q3 2016.
- On an adjusted basis to exclude one-time and unusual items and impairments, net earnings were $4.4 million for the third quarter of 2017 compared to net earnings of $4.6 million in Q3 2016. The Company realized a net loss of $2.8 million on an unadjusted basis.
- The Company’s inventory reduction efforts are already well under-way, with over $20 million of inventory reductions achieved compared to the beginning of the year.
“The results for the third quarter of 2017 highlight the need for the implementation of the new strategic direction that shareholders voted for at the annual meeting this past June,” stated Ken Barbet, President and CEO, Liquor Stores North America. “The focus of this strategy will be to recapture market share of the Company in our core Alberta market and increase our profitability. Our immediate focus will be to improve our operating efficiency, including better leveraging of our operating costs and improving inventory turns to fund an accelerated renovation program for our core Alberta and B.C. markets.”
“By restoring Liquor Stores focus on its core markets, and achieving exceptional operating performance, the Company believes that its new strategy will position Liquor Stores to create significant increases in long-term value for our shareholders” Mr. Barbet concluded.
FINANCIAL HIGHLIGHTS
| (In thousands of Canadian dollars except per share amounts, unaudited) | Three months ended September 30 | Nine months ended September 30 | ||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||
| Sales | $ | 204,371 | $ | 208,760 | $ | 574,868 | $ | 590,067 | ||||||
| Net earnings (loss) | $ | (2,836 | ) | $ | 4,615 | $ | (9,003 | ) | $ | 7,809 | ||||
| Basic earnings (loss) per share | $ | (0.12 | ) | $ | 0.16 | $ | (0.37 | ) | $ | 0.24 | ||||
| As adjusted (1): | ||||||||||||||
| Operating profit before amortization | $ | 9,905 | $ | 12,611 | $ | 21,590 | $ | 28,346 | ||||||
| Net earnings | $ | 4,392 | $ | 4,615 | $ | 3,478 | $ | 8,708 | ||||||
| Basic earnings per share | $ | 0.14 | $ | 0.16 | $ | 0.08 | $ | 0.28 | ||||||
| Stores in operation as at September 30 | 250 | 252 | 250 | 252 | ||||||||||
- Adjusted operating profit before amortization, adjusted net earnings and adjusted basic earnings per share and adjusting items per share are non-IFRS measures that do not have any standardized meaning prescribed by IFRS. For more information on these non-IFRS measures and for a reconciliation to the closest IFRS measure, see the ‘Non-IFRS Financial Measures’ in our Management Discussion and Analysis (“MD&A”) for the three and nine months ended September 30 2017, which is available on the Company’s website (www.liquorstoresna.ca) and on the SEDAR website (www.sedar.com).
CONFERENCE CALL
Liquor Stores N.A Ltd. will host an analyst and investor conference call on November 10, 2017 to discuss results for the three and nine months ended September 30, 2017. The conference call will take place at 7:30 a.m. M.T.
To participate in the call, please dial (416) 340-2216 or toll-free (800) 273-9672. An archived recording of the conference call will be available approximately one hour after the completion of the call, by dialling: (905) 694-9451 or Toll-Free Access: (800) 408-3053. The required passcode is: 9694652.
ABOUT LIQUOR STORES N.A. LTD.
The Company operates 248 retail liquor stores. The Company’s common shares and convertible subordinated debentures trade on the Toronto Stock Exchange under the symbols “LIQ” and “LIQ.DB.B”, respectively.
Additional information about Liquor Stores N.A. Ltd. is available at www.sedar.com and the Company’s website at www.liquorstoresna.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of the "safe harbour" provisions of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "budget", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target", "pursue" and similar words suggesting future events or future performance. In particular, this press release contains forward-looking statements pertaining to, without limitation, the following: the ability of the Company to navigate current market conditions and invest in growth via measured greenfield expansion and store renovations; the Company's plans to focus on initiatives that will deliver returns, including store remodelling and measured growth in the Canadian market, improvement in operating efficiency and an improvement in inventory turns; and the Company continuing to evaluate and assess potential store acquisitions for their ability to add accretive cash flow and create shareholder value.
With respect to forward-looking statements contained in this press release, the Company has made assumptions regarding, among other things: the present and future economic and business conditions in Alberta and the other markets in which the Company operates, and in North America and globally in general; the ability of management to execute the Company's business plan, including its capital allocation strategy; and the availability of capital on acceptable terms. In addition, many of the forward-looking statements contained in this document are located proximate to assumptions that are specific to those forward-looking statements, and such assumptions should be taken into account when reading such forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the risk that we will be unable to execute our business plan, including the capital allocation strategy, as planned without significant adverse impacts from various factors beyond our control; dependence on suppliers; potential delays or changes in plans with respect to capital expenditures and the availability of capital on acceptable terms; risks inherent in the liquor retail industry; competition for, among other things, customers, supply, capital and skilled personnel; changes in labour costs and markets; incorrect assessments of the value of acquisitions; general economic and political conditions in Canada (including Alberta), the U.S. and globally; industry conditions, including changes in government regulations; fluctuations in foreign exchange or interest rates; unanticipated operating events; failure to obtain regulatory and third-party consents and approvals when required; changes in tax and other laws that affect us and our security holders; the potential failure of counterparties to honour their contractual obligations; stock market volatility; and the other factors described in our public filings (including our Annual Information Form) available at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking statements contained in this document speak only as of the date of this press release. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
For Further Information
Matthew Rudd
Senior Vice President and Chief Financial Officer
Liquor Stores N.A. Ltd.
(780) 702-7389